Tuesday, 2 June 2020

US says it will probe India, other countries for digital services taxes

Other countries against whom the investigations might be initiated include Austria, Brazil, the Czech Republic, the European Union, Indonesia, Italy, Spain, Turkey and the United Kingdom
More tariffs on exports: US to probe digital services taxes by India, others
The Trump Administration has decided to investigate digital services taxes considered by several trading partners, including India, to “unfairly target American tech companies”, an US official has announced.”President Trump is concerned that many of our trading partners are adopting tax schemes designed to unfairly target our companies,” US Trade Representatives (USTR) Robert Lighthizer said on Tuesday, according to news agency PTI.Other countries against whom the investigations might be initiated include Austria, Brazil, the Czech Republic, the European Union, Indonesia, Italy, Spain, Turkey and the United Kingdom.


We are prepared to take all appropriate action to defend our businesses and workers against any such discrimination, he said.”Over the past two years, various countries have taken under consideration or adopted taxes on revenues that certain companies generate from providing certain digital services to, or aimed at, users in those jurisdictions,” the USTR said.”They are referred to as Digital Services Taxes or DSTs. Available evidence suggests the DSTs are expected to target large US-based tech companies,” he said.USTR said that India adopted a two per cent DST in March 2020…

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